S&S Lifetime ISAs

[emicen]

Looking at opening an ISA, or rather 2;
- a stocks & shares ISA for a few [possibly 1] global funds
- a stocks & shares Lifetime ISA for supplementing my pension and a last resort fund in the interim, probably with a global tracker fund also

I can only see 3 providers of S&S LISAs, have they really been that much of a damp squib? I’m assuming there is only 3 providers as the market need just isn’t there for more.

I can see that the 25% penalty for early withdrawl is a downside, but at the same time, the 25% bonus on the way in is a pretty good upside.

If pensions tax relief is constantly being muted as under threat, what’s the consensus of opinion on the feasibility of the LISA with its 25% bonus?

[Deesee]

We have hargreaves landsdown ones, funds, single companies shares, trackers all available.

Tax free growth, tax free dividends & 25% top up on investment.

Works well we think.

[Simpo Two]

Interesting (but only if you're under 40).

https://www.moneysavingexpert.com/savings/lifetime...

[Highway Star]

Deesee said:

We have hargreaves landsdown ones, funds, single companies shares, trackers all available.

Tax free growth, tax free dividends & 25% top up on investment.

Works well we think.

My wife and I have HL S&S LISAs, we top them up as soon as the tax year starts and enjoy the 25% top up - will be a nice supplement for our pensions.

[emicen]

Highway Star said:

Deesee said:

We have hargreaves landsdown ones, funds, single companies shares, trackers all available.

Tax free growth, tax free dividends & 25% top up on investment.

Works well we think.

My wife and I have HL S&S LISAs, we top them up as soon as the tax year starts and enjoy the 25% top up - will be a nice supplement for our pensions.

HL are looking like the best option from the 3 I can see.

I’m thinking one of these is a good place to park one off sums like bonuses where it would be a right faff to get them in to my pension.

[Ridealong]

I have a S&S ISA with HL as well, if you read other Finance threads, members have stated (of which I agree with) that HL is the easiest platform to use, but their fees can be more expensive than other platforms based on the amount you invest/trade/buy/sell.

[emicen]

In this instance I’m somewhat hamstrung by the platforms available as only HL, Nutmeg and onefamily offer S&S LISAs. From those 3, HL is the cheapest.

For the other S&S ISA I intend to open, it appears that initially sticking with Interactive Investor is more expensive but beyond 3 years with the initial amount I intend to put in plus monthly contributions it will move to being cheaper and allows me to bed some of my existing share holdings.

[S9JTO]

AJ Bell offer a LISA, cheaper than HL - I'm with them. I opted for them purely because I have a SIPP with them. Works well.

[grahamm]

emicen said:

In this instance I’m somewhat hamstrung by the platforms available as only HL, Nutmeg and onefamily offer S&S LISAs. From those 3, HL is the cheapest.

For the other S&S ISA I intend to open, it appears that initially sticking with Interactive Investor is more expensive but beyond 3 years with the initial amount I intend to put in plus monthly contributions it will move to being cheaper and allows me to bed some of my existing share holdings.

I think A J Bell offer lifetime ISAs, I am fairly sure my son has one with them.

[smithyithy]

S9JTO said:

AJ Bell offer a LISA, cheaper than HL - I'm with them. I opted for them purely because I have a SIPP with them. Works well.

I have a regular S&S ISA with AJ Bell, I like their platform.

My LISA is with Skipton as it's Cash.

[Stedman]

Transact also offer S&S LISAs

[S9JTO]

smithyithy said:

I have a regular S&S ISA with AJ Bell, I like their platform.

My LISA is with Skipton as it's Cash.

Yeah it's not too bad, I worked there for a while so seemed natural.

Skipton makes sense for cash, of course.

[menousername]

Anyone able to advise which is best - HL or AJ Bell / YouInvest - anything in it?

And how does the 25% top up work? Whats the timeframe for it going in after either a lump sum investment or a monthly dd?

Finally - what criteria did you use to decide between a S&S lifetime ISA or a cash one? The 25% makes a cash ISA seem a fairly stable and attractive option

[Highway Star]

menousername said:

Anyone able to advise which is best - HL or AJ Bell / YouInvest - anything in it?

And how does the 25% top up work? Whats the timeframe for it going in after either a lump sum investment or a monthly dd?

Finally - what criteria did you use to decide between a S&S lifetime ISA or a cash one? The 25% makes a cash ISA seem a fairly stable and attractive option

The top up is paid monthly, so if you put in your full £4000 in one go, within a month the extra £1000 will be in your account. Likewise if you do a smaller monthly payment, you'll get the top ups paid monthly.

I've got a HL S&S LISA, but to be honest I didn't look at other providers as all my investments are with HL. I won't need my LISA until I'm in my 50s at least so went for a S&S one in the hope that over the long term it'll outperform cash plus you are 25% up from the start. So far, it has done pretty well.

[emicen]

On what I projected I would be paying in initially and then the number of funds being bought with my monthly contributions, AJBell worked out cheaper. It depends on a number of variables, which will vary depending on the person. Annoyingly I can’t find the spreadsheet I created to expand any further on that.

In the end, I decided that my investment horizon and goal was more immediate than 20 years from now and the restriction on withdrawal would outweigh the advantage of the paying in bonus. Opted for a normal ISA.

I will still open one with a token amount at some point this year so that it’s boxed off a good few years before the 40 year block comes round.